I, Sanctimonius Pontificus, Holiest of Paladins, have this day single pulled and thoroughly smited Poxbreath, despite losing the damnable wolf on the way.
As I was following the wolf, he did a little Barry Sanders-esque Juke move on me and disappeared.
Calling the wrath of Marr down on the slippery canine I nevertheless resolved to scout out the Rygorr camp in case Poxbreath spawned anyway.
Lo and behold, as I get to the camp (just North of the bridge to Iceclad) I see a few too many orcs hanging out by the fire. I inch closer... closer... suddenly one of the orcs peels off and charges. It's none other than Poxbreath in all his halitosial glory.
Praise Marr for the beating I then delivered upon him, leaving his lifeless corpse bleeding in the snow.
No sign of the wolf anywhere at this point, so I question whether or not you need to follow the flea-bitten cur at all.